Why doesn’t the change to equilibrium happen immediately when there is surplus in the market?

Q: Describe the factors that can effect demand and supply, what are their impacts on market…

A: The demand (D) refers to the total quantities of a particular product that consumers are willing and…

Q: If the economy goes into a recession and income fall, what happen in the market for inferior good?

A: Inferior goods are the goods that are inversely related to the income ie these might be low-quality…

Q: When Good A and Good B are complements in production and there is a decrease in the price of Good A,…

A: Complementary good is defined as the good that would be appealing to the large part of consumers…

Q: Assume that the market can be represented by the supply and demand curves: Qs = 6P - 60 Qp = 60 - 4P…

A: The equilibrium price is the only price where the plans of consumers and the plans of producers…

Q: Market Equilibrium is important to both producers

A: ‘Equilibrium’ refers to the situation where quantity(Q) demanded equals quantity(Q) supplied. The…

Q: What is the effect of a decrease in the price of potato chips on the market for pretzels, a…

A: Two goods are said to be complementary when they are used together.Two goods are said to be…

Q: If the price is below the equilibrium level, then the quantity demanded will exceed the quantity…

A: Demand schedule is the tabular representation of quantity demanded at various prices.  Demand curve…

Q: If both supply and demand increase at the same time, the equilibrium price will  (rise , fall ,…

A: If both demand and supply increase at the same time then changes in equilibrium price and quantity…

Q: what is demand in economics

A: Meaning of Microeconomics: The term microeconomics refers to that situation under which the…

Q: Create a graph that contains the Demand and Supply Curves. The Equilibrium of the graph would be the…

A: The link between the amount of a product provided and its price, while maintaining other variables…

Q: Let’s assume that tuna and salmon are substitute for one another. Suppose the price of tuna…

A: When two goods are substitues, they cannot be consumed together as they are alternatives of each…

Q: Sketch out (on scratch paper) or else imagine a market for pizza with a linear demand curve that…

A: Consumer surplus refers to the gain to the consumer when the price the consumer is willing to spend…

Q: When analyzing a market, how do economists deal with the problem that many factors that affect the…

A: The market can be defined as a place where buyers and sellers interact with each other for the…

Q: Why can't the laws of supply and demand be applied in all commodities and services?

A: The law of supply and demand explains how, all other things being equal, the price of a good…

Q: Consider the market for lattes. If scientists discover that steamed milk, which is used to make…

A: A shift in the demand curve is defined when there is a change in demand; when the price of quantity…

Q: What would cause a change in demand, and a change in supply?

A: Change in demand is caused by the demand factors other than price. Therefore the following factors…

Q: How does the law of supply and demand work?

A: Law of demand When price is less,quantity demanded is more. When price is more,quantity demanded is…

Q: When the price is above the equilibrium, explain how market forces move the market price to…

A: ‘Equilibrium’ refers to the situation where quantity(Q) demanded equals quantity(Q) supplied. The…

Q: Last, extend your analysis to the long run, a period of time long enough for new coffee growers to…

A: Over the long run in a perfectly competitive market — as a result of the course of entry and exit —…

Q: Suppose that demand for a good increases and, at the same time, supply of the good decreases. What…

A: Equilibrium price:The equilibrium price is the price at which the quantity demanded equals the…

Q: Suppose you are asked to do a market analysis in an area in which a natural disaster has recently…

A: Market demand and supply refer to the amount of a good or service that consumers are willing and…

Q: Suppose a war breaks out in the Middle East, where a large proportion of the world's oil production…

A: Demand is the desire backed by a willingness to pay and the ability to pay by an individual. The…

Q: Explain why the market price may not be the same as the equilibrium price.

A: 8) The equilibrium price of the market is set through the intersection of the market demand and…